Transcript Slide 1

Digital Services and Distribution
FY2008 Budget
February 12, 2007
PRIVILEGED AND CONFIDENTIAL
DRAFT
Agenda
7/6/2015
•
Executive Summary
•
Digital Distribution
•
Mobile Entertainment
•
Digital Services / Grouper
•
Consolidated P&L
PRIVILEGED AND CONFIDENTIAL
page 2
Expanding Content and Distribution
Content
Channels
DRAFT
Distribution
IP
Films & Television
New Release, Library
and Direct-to-Video
TV Episodes / Busted Pilots
Professional short form
Webisodes, Video clips
Music videos, News clips, Sports
Studio-seeded
Studio-initiated
Prosumer
Revise to include / emphasize:
•Multiple business models
•Expanding content types
•Devices
Mobile
G-studios
Low-cost, in-house short form
User-Generated Video
Amateur
Mash-ups
Mobile games
Games and applications
7/6/2015
PRIVILEGED AND CONFIDENTIAL
page 3
Competitors Continue to Invest Heavily as User Demand for
Digital Content Continues to Grow
DRAFT
Emphasize overall explosion in digital content (TV on
Fox.com, CBS.com, NBC.com)
• Distribution of studio content
– Studios are aggressively licensing content for digital distribution through leading web sites
and hardware manufacturers
– Studios have acquired services (MySpace) and launched services (CBS Innrtube) to
increase distribution and establish direct relationships with end users
• Mobile distribution
– Content is becoming more mainstream and relevant to consumers
– Users are gaining increased access to 3G handsets
– Carriers seeking new forms of content, including video to attract and retain customers
• User generated, viral, and dedicated online video
– Google’s acquisition of YouTube and recently announced plans to begin sharing revenues
with users increases competition for quality content
– Ongoing investments by new media (Yahoo!) and traditional media competitors (Viacom,
NewsCorp) increases competition for content and audience
– VH1 announced amateur music video competition
7/6/2015
PRIVILEGED AND CONFIDENTIAL
page 4
Digital Services and Distribution Support for
Sony United
• VAIO Overall (all US VAIOS ship with SPE movies [Underworld, Monster House,
RV, Click, Spider-man] select overseas deals)
• Memory Stick and PSP – Movies for Memory Stick Entertainment Pack (Swat,
Grudge, XXX)
DRAFT
Clean-up,
Make this
Slide Visual
Show ’07 vs.
‘08
• Solidified content bundling relationships with Sony Ericsson (Final Fantasy –
France, Snatch & Layer Cake – UIK, Casino Royale – Global; WOF – U.S.)
•
•
•
•
•
•
Grouper on PSP
Grouper on IP Bravia
Bravia – early discussions for day and date w/ physical DVD (“The Home Project”)
Grouper on PS3
Digital Imaging – Grouper integration
PS3 – Digital distribution licensing content
7/6/2015
PRIVILEGED AND CONFIDENTIAL
page 5
2007 Success Established Foundation for Growth
DRAFT
• Established a strong foundation in FY2007
–Launched multiple new business models for digital distribution
–Launched mobile video
–Significantly expanded distribution partnerships across internet services, mobile
carriers, and hardware partnerships
–Acquired and integrated Grouper to increase exposure to short-form adsupported content
–Created and launched first branded cross-platform channels
Include
Actual
Growth Stats
• Positioned for significant growth in FY2008
–Continue to aggressively build the distribution network
–Broaden digital content offering, including acquired and produced content
–Increase number of branded digital channels and expand distribution
–Further grow Grouper through differentiated content and service offer; begin
monetizing audience
7/6/2015
PRIVILEGED AND CONFIDENTIAL
page 6
Digital Services and Distribution – Revenue Overview
DRAFT
Revenue ($MM)
$60
$50.3
$45.7
$50
Total
$40
$32
Millions
($)
$30
$36
Digital Distribution
$10
Grouper
$19.5
$16.5
$20
$10
$0
$16
$16
$3
'07 Budget
Operating Income before Contribution
Digital Distribution
$8.1
Grouper
($10.0)
Total
7/6/2015
$19
($1.9)
'07 Forecast
'08 MRP
'08 Budget
$4.3
($10.0)
$14.9
($28.0)
$12.2
($10.0)
($5.7)
($9.4)
($2.2)
PRIVILEGED AND CONFIDENTIAL
page 7
Digital Services and Distribution – Summary P&L
P&L ($000s)
'07 Budget
'07 Forecast
Variance
'08 MRP
'08 Budget
DRAFT
Variance
Total Revenue
$19,489
$16,520
($2,969)
$50,323
$45,688
($4,635)
Total COGS
($5,173)
($3,684)
$1,489
($18,020)
($15,900)
$2,120
Gross Profit
$14,316
$12,836
($1,480)
$32,303
$29,788
($2,515)
($12,560)
($13,265)
($23,510)
($42,019)
($18,509)
64%
80%
47%
92%
($1,666)
($963)
($949)
($820)
Total Operating Expenses
OpEx as a % of Revenue
Deal Amortization
Operating Income
$90
($1,392)
Less: Contribution
($11,649)
($11,649)
EBIT Before Special Items
($11,559)
($13,041)
Special Items
EBIT
Headcount
Grouper
ODE
Mobile
Total
7/6/2015
$0
($11,559)
52
11
13
76
($705)
$703
($1,482)
$0
($1,482)
$0
($13,041)
51
11
13
75
$0
($1,482)
(1)
(1)
PRIVILEGED AND CONFIDENTIAL
$129
$7,844
($13,051)
($20,895)
($18,735)
($23,820)
($5,085)
($10,891)
($36,871)
($25,980)
$3,700
$3,700
($33,171)
($22,280)
$0
($10,891)
67
14
17
98
85
24
15
124
18
10
(2)
26
page 8
EBIT Reconciliation
7/6/2015
PRIVILEGED AND CONFIDENTIAL
DRAFT
page 9
DRAFT
Agenda
7/6/2015
•
Executive Summary
•
Digital Distribution
•
Mobile Entertainment
•
Digital Services / Grouper
•
Consolidated P&L
PRIVILEGED AND CONFIDENTIAL
page 10
Success in FY07 Established Foundation for Growth in 2008
FY07: $4MM
FY08: $18MM
Launched a wide range of business models
and partnerships
Expand accounts and grow revenue
base with existing partners
Broad Launch of Digital Sell-through
DRAFT
$2.5M
Add BlockBuster, PlayStation, Real Networks
$0.75M
Expanded Digital Rental
Add Microsoft, Verizon, BlockBuster, Yahoo
Expanded Digital Subscription
$1.5M
Launched Ad Supported Channels
$0.1M
Add Yahoo
Add Ending Customers
7/6/2015
PRIVILEGED AND CONFIDENTIAL
Add Ending Customers
page 11
Key FY07 Successes
DRAFT
• Established and launched new business models
– Launched download to own business
– Launched cross-platform digital channels
• Expanded distribution relationships
– Deals with Amazon, Wal-Mart, Movielink, CinemaNOW, AOL, Clickstar, GUBA,
AT&T, Best Buy, and NetFlix
• Supported cross-Sony digital entertainment initiatives
– Launched first secure digital content program for the PSP
– Content bundling relationships with VAIO and Sony Ericsson
• Established end-to-end operational processes with SPHE, SPT, WPF and DigiPol
to operate these emgerging digital busiensses
7/6/2015
PRIVILEGED AND CONFIDENTIAL
page 12
2007 DST Experience Demonstrated Demand for a
Wide Range of Studio Content
DRAFT
Top 10 DST Titles
• Made 305 feature film titles
available in the marketplace to
date (most of any studio)
1. The Da Vinci Code
2. Click
3. Talladega Nights
• Business to date is largely new
release driven, but there is
demonstrated demand for “long
tail” product
4. Underworld Evolution
5. Ultraviolet
6. RV
7. Silent Hill
• All titles in the program have
been purchased by end
consumers
7/6/2015
PRIVILEGED AND CONFIDENTIAL
8. The Covenant
9. Monster House
10. Memoirs of a Geisha
page 13
FY08 Digital Sell-Through/IP-VOD Strategy
DRAFT
• Aggressively build on the existing distribution network
– Strike partnerships across the complete spectrum of traditional and on-line players
• Significant opportunity for incremental revenue in an Apple deal
– Expand partners to include: Starz, Apple, Microsoft, Best Buy, Transworld, Target
• Expand the overall content offering
– Broaden selection of film and TV product
– Introduce the most compelling short-form/original content into the offering
– Plan to launch DST of TV product by the end of the year
• Continue to lead the market in innovating the digital product offering and usage models
• Continue to operate an industry leading digital organization
– End to end asset delivery and digital operations
– Create innovative marketing and promotional programs
• Grow the business from $5.0M in FY07 to $15.5M in FY08
7/6/2015
PRIVILEGED AND CONFIDENTIAL
page 14
FY08 Digital Channel Strategy
DRAFT
• Continue to expand SPE’s digital channel offering, including
– Comedy (Funnybone) - Who’s The Boss, Newsradio
– Action (AXN) - SWAT, Charlie’s Angels
– Kids (Bounce) - Jackie Chan, Animated MIB,
– International Programming (World Channel)
– Anime (Animax) - Samurai X
– Movies on Demand (Now Playing/Hollywood Hits)
– Minisodes
– Best of Grouper
• Introduce additional film and television properties into the channels as well as a blend of original
programming and interactive features
• Establish relationships with 3rd party content holders to improve channel offerings
– Nelvana for Bounce (e.g., Rescue Heroes, Rolie Polie Olie, Babar)
– Ban Dai for Animax (e.g., Gundam)
• Aggressively expand channel distribution to high-traffic destinations across platforms
• Grow revenues from $0.1M in FY08 to $4.0M in FY08
7/6/2015
PRIVILEGED AND CONFIDENTIAL
page 15
Digital Distribution – Revenue Overview
DRAFT
Revenue ($MM)
$20
$18.0
Total
16.7
$15
$12
Millions
($)
$10
$8.9
$6
$8.9
$15
$6
$5
$4
$3
$3
'07 Budget
'07 Forecast
$3
$0
7/6/2015
Licensing
'08 MRP
PRIVILEGED AND CONFIDENTIAL
$2
Advertising / Sponsor
'08 Budget
page 16
Digital Distribution – Summary P&L
P&L ($000s)
Total Revenue
'07 Budget
'07 Forecast
Variance
DRAFT
'08 MRP
'08 Budget
Variance
$8,878
$8,878
$0
$18,000
$16,675
($1,325)
Total COGS
($1,779)
($1,779)
$0
($3,505)
($1,950)
$1,555
Gross Profit
$7,099
$7,099
$0
$14,495
$14,725
($3,296)
($3,296)
$0
($4,615)
($8,100)
37%
37%
26%
49%
Operating Income
$3,803
$3,803
$0
$9,880
$6,625
($3,255)
Less: Contribution
($5,211)
($5,211)
$0
($12,040)
($11,000)
$1,040
EBIT
($1,408)
($1,408)
$0
($2,160)
($4,375)
($2,215)
Total Operating Expenses
OpEx as a % of Revenue
Headcount
7/6/2015
11
11
-
PRIVILEGED AND CONFIDENTIAL
14
24
$230
($3,485)
10
page 17
Digital Distribution:
Requested Increase in Headcount
•
•
DRAFT
Confirm numbers
Call-out required growth based on need to service growing customer base
7/6/2015
PRIVILEGED AND CONFIDENTIAL
page 18
DRAFT
Agenda
7/6/2015
•
Executive Summary
•
Digital Distribution
•
Mobile Entertainment
•
Digital Services / Grouper
•
Consolidated P&L
PRIVILEGED AND CONFIDENTIAL
page 19
Sony Pictures Mobile Entertainment - Overview
Full Suite of Mobile
Content Products
+
Comprehensive Marketing
and Distribution Footprint
Personalization
Mobile
Video
Mobile
Applications
7/6/2015
Carriers
Mobile
Games
Direct to
Consumer
SMS
Interactivity
PRIVILEGED AND CONFIDENTIAL
Handsets
Aggregators
page 20
Games in FY07: new approach proving successful
• Significantly higher unitsales-per-game were
extracted by:
– Tighter carrier
relationships
– Strategic handset
porting and ops
management
– Targeted marketing
and product rollout
– Smarter product
selection
7/6/2015
Case I: Re-Launch
• Effort made to drive new sales
of popular PlayStation title
• Porting, placement and
marketing drove re-launch
• Sales now exceeding original
title launch – not typical in the
games industry
Ratchet and Clank
Re-launch
18,000
16,000
Units Sold
• Despite having ½ as
many games in the
market in FY 07, MEG
managed to grow the
business in terms of total
monthly unit sales
14,000
12,000
10,000
8,000
6,000
April
May
June
July
Aug
Sept
Oct
Case II: Re-Fresh
• Top-selling mobile brand grew
12% after distribution of a
new version of the game
(note: not launched on Sprint
to date)
• More strategic handset
porting, mixed with securing
better deck placement
Wheel of Fortune – ‘07
Case III: New Game Launch
• First new title release in nearly 12
months
• Strategically planned around
movie release
• Strategic handset porting, secured
deck placement and marketing
• Sales exceeding Jeopardy,
previous number 2 title for MEG
James Bond: Casino Royale
Nov
Dec
Re-fresh
PRIVILEGED AND CONFIDENTIAL
Launch
page 21
Mobile Games in FY 08: more games, more distribution
Launch New Games
(current slate)
FEB
MAR
Grow Distribution for Catalog
(carriers, handset, online)
1. Fish’n Tunes
Casino Royale
Wheel of Fortune 2007
2. JEOPARDY! 2007
MAR
Ghostbusters
FOR
3. SnoopUPDATE
Dogg Cruisin’
FULL
SLATE
APR
MAY
4. Spider-Man 3 Action
5. God Of War
Ratchet & Clank
Q*Bert
Balloon Breaker
Elevator Action
JUNE
JULY
’08 Strategy
7/6/2015
6. Spider-Man 3 Puzzle
Snoop Dogg Boxing
7. Jump That Car
• Launch 1 new game per month; strategically manage the portfolio/roadmap
• Aggressively optimize carrier deck placement
• Expand existing Motorola and Sony Ericsson embed programs,
and land new OEM deals
• Utilize consumer product marketing approach
• Strike relationship with leading publisher (e.g., Glu) to secure game pipeline
• Grow revenue
from $7.1M to 1$12.5M in FY 08
PRIVILEGED AND CONFIDENTIAL
page 22
Launch of mobile video services in FY 07 are foundation for ‘08
Sony “Sneak Peeks”
PPV Movies
Movie Channel
• Promotional channel featuring clips
from theatrical, television, PlayStation,
FearNet and mobile games
• Sony Pictures is now distributing fulllength movies over the air on mobile
carriers’ video services
(launching in March)
• Currently at 350k streams / month on
Sprint and Verizon – increased
programming leading to 20% growth
month over month
• Sprint Movies offers pay-per-view
service with DVD features: pause,
skip forward and back and resume
Sony Pictures
•Exclusives
•In Theatres
•Coming to Theatres
•On DVD
•Coming to DVD
•Game Previews
•FearNet
•PlayStation
Add
Memory
• Offer
7 movies at aCards
time
• Negotiating with other carriers for
distribution
• The only linear looping movie
channel within Sprint’s Basic +
tier of video
Update logos
• Two looping channels with four
classic movies on each channel
- movies include comedy, action
and drama
• One movie on each channel
refreshed weekly
• Optimizes library value by
utilizing unused inventory on
a spot basis
7/6/2015
PRIVILEGED AND CONFIDENTIAL
page 23
Premium Video Services Will be Launched in FY 08 into Carriers’
“Basic tiers”
Extend Channel Brands to Mobile
SPT
Channels
Conformed with logos
on Channel Page
…using a range of business models
…and consumer experiences
Fee-per-sub
Ad Supported
Transactional
’08 Strategy
7/6/2015
Linear streaming
On-demand
Sell-through
• Concentrate on biggest video distributors (in order)- Sprint, Verizon, Cingular
• Launch quality video services in a range of genres, with a breadth of
business models, addressing a variety of consumer experiences
• Aggressively optimize deck placement and marketing tactics
• Draft off marketing for IP-video and other mobile products where possible
PRIVILEGED AND CONFIDENTIAL
page 24
A comprehensive distribution footprint was secured in FY 07; an
increased footprint in 08 will grow sales
’07: Grew relationships, marketing and tech ops capabilities with partners
Carriers
Handsets
Aggregators
D – to - C
Online Aggregators:
Increase reach by
licensing to a select group
of top online retailers
Direct-to-Consumer:
Establish direct-doconsumer distribution
leveraging applications
and web
’08 Strategy
Carriers: Continue to focus
aggressively on top 3 players
in the market, push T-Mobile
and Alltel for growth, and add
additional strategic players
(e.g., Virgin)
7/6/2015
Handsets: Continue to
push on embed deals with
Motorola; secure deals
with Nokia and Sony
Ericsson
PRIVILEGED AND CONFIDENTIAL
page 25
Mobile -- Revenue Overview
Revenue ($MM)
Total
$19.3
$20
$3
Licensing, D2C &
Personalization
$13
Games
$19.3
$15
$4
Millions
($)
$10
$7.8
$7.8
$1
$1
$11
$5
$7
$7
$4
Retail / Online Product
$0
'07 Budget
7/6/2015
'07 Forecast
'08 MRP
PRIVILEGED AND CONFIDENTIAL
'08 Budget
page 26
Mobile – Summary P&L
P&L ($000s)
Total Revenue
Total COGS
Gross Profit
'07 Budget
$7,611
($405)
'07 Forecast
Variance
$7,611
($405)
'08 MRP
'08 Budget
Variance
$0
$13,725
$18,975
$5,250
$0
($6,330)
($4,940)
$1,390
$6,640
$7,206
$7,206
$0
$7,395
$14,035
($2,879)
($2,879)
$0
($5,065)
($5,710)
38%
38%
37%
30%
Operating Income
$4,327
$4,327
$0
$2,330
$8,325
$5,995
Less: Contribution
($6,438)
($6,438)
$0
($6,695)
($12,820)
($6,125)
EBIT
($2,111)
($2,111)
$0
($4,365)
($4,495)
($130)
Total Operating Expenses
OpEx as a % of Revenue
Headcount
7/6/2015
13
13
-
PRIVILEGED AND CONFIDENTIAL
17
15
($645)
(2)
page 27
Mobile:
Requested Increase in Headcount
•
•
DRAFT
Confirm numbers per Lori
Call-out need to increase headcount to service 10 new mobile and broadband
channels
7/6/2015
PRIVILEGED AND CONFIDENTIAL
page 28
Executive Office:
Requested Increase in Headcount
7/6/2015
PRIVILEGED AND CONFIDENTIAL
DRAFT
page 29
DRAFT
Agenda
7/6/2015
•
Executive Summary
•
Digital Distribution
•
Mobile Entertainment
•
Digital Services / Grouper
•
Consolidated P&L
PRIVILEGED AND CONFIDENTIAL
page 30
Recent Progress and FY08 Focus Areas
DRAFT
Successful integration in 2007 positions us for differentiation,
growth, and monetization in 2008
FY07 Establish Foundation
FY08 Grow and Monetize
(Grouper 3.0)
• Successful integration with
Sony Pictures
• Attract and invest in
differentiated content
• Retain and grow initial user
base
• Create a compelling,
channel-based viewing
experience
• Support “Sony United” by
integrating with other
divisions
7/6/2015
• Market and distribute the
service
• Expand and monetize the
user base
PRIVILEGED AND CONFIDENTIAL
page 31
Addressed Early Integration Challenges in FY07
DRAFT
• Addressed disruption caused by litigation to ensure continued growth
–Disable Grouper client and downloads as a precaution
–Although growth was dampened, Grouper has grown 40% since acquisition
• Delayed launch of revenues to remain competitive and solidify customer base
–Key competitors, including YouTube, waiting to roll-out advertising
–Launching advertisements in conjunction with differentiated, Grouper 3.0 service
• Adjusting service and business model to mitigate impact to revenue
–Launching Grouper 3.0 to differentiate service and ensure continued user growth
–Increasing proportion of domestic traffic; more easily monetized
–Increasing proportion of on-site traffic; drives greater usage and ad inventory
–Expanding revenue models to include sponsorships
7/6/2015
PRIVILEGED AND CONFIDENTIAL
page 32
FY07: Integrated Grouper and Grew User Base
Integrated
Across Sony
•SPE content offerings through ScreenBites
•DVD promotion for Seinfeld Season 7
•Contests for SPE theatrical releases
• Grouper branding integrated into PSP
• Integration with IP-enabled Bravia
9.0
Expanded
User Base
• Grew users 40% to 9MM
• Grew daily video streams 1.6MM
Monthly Unique Users (millions)
10
9
8
7
7.8
1.6
1.4
6.4
1.2
6.0
6
1
5.3
5
4
0.8
4.5
0.6
3
0.4
2
1
1.9
2.5
3.0
0.2
0
0
October
7/6/2015
PRIVILEGED AND CONFIDENTIAL
1.8
Daily Streams (millions)
Integrated with
SPE
DRAFT
November
December
page 33
DRAFT
Grouper 3.0
Vision
• Establish Grouper as a recognized and trusted brand for
semi-professional and viral videos
• Distribute through a broad, multi-platform syndication network including
the web, cell phones, and portable devices
Execution
• Offer best-of-breed programmed, editorialized, channel-based viewing
• Create a “pathway to fame” to attract the best content creators
• Make it simple for content creators to publish to any site
• Supplement user-uploaded videos with Grouper-produced content and
acquired content
• Provide a superior online video experience including the best content
guide and high-quality video playback
Launching Grouper 3.0 in June 2007
7/6/2015
PRIVILEGED AND CONFIDENTIAL
page 34
DRAFT
Grouper 3.0 Content Strategy
Create and Attract Content
Identify and Invest in
Differentiated Content
Program
Channel-based
Programming
Grouper Produced Content
Tier 1
Prosumer Content
Identify and acquire / license
best videos
Tier 2
General UGV
Leverage user ratings to
identify popular content
Provide Incentives to Attract
Content Creators
Identify Differentiated
Content, Acquire a Subset
7/6/2015
PRIVILEGED AND CONFIDENTIAL
Tier 3
Create a Compelling Viewing
Experience
page 35
Provide Incentives to Attract Content Creators
• Provide incentives for content creators to
share their content
• Offer a path to recognition for each
channel
– Include both online and offline rewards
• Ability to easily publish to any site,
including the content creator’s own site
7/6/2015
DRAFT
“The Line-Up”
(Stand-up Comedy Channel)
Content Featured
in “Best of” Show
Featured Content
(Views, Ratings, Editorial)
All Content Uploaded to Channel
PRIVILEGED AND CONFIDENTIAL
Guest Host
on
“Best of”
Show
15 minute
spot at the
Laugh
Factory
page 36
DRAFT
Invest in Differentiated Content
Acquired
Produced
Original
Production
• Short-form (2-10 minute),
higher quality production
content
• Shows developed for
specific channels
• Mix of in-house (60%) and
commissioned 3rd party
shows (40%)
$3.3MM
7/6/2015
Prosumer
• Quality UGV
content with an
established online
audience
• Grouper will
acquire or license
for a fixed fee or
revenue share on
an exclusive basis
• Content not tied to
a specific channel
Low-End
UGV
Small
Collections
• Opportunistic
acquisition of
content with low
production value
but proven
audience appeal
• Fixed fee paid for
exclusive
distribution rights
$1M
PRIVILEGED AND CONFIDENTIAL
$360k
$500k
page 37
DRAFT
Program on a Channel Basis
Content
Value
Tier
Tier 1
High
Content Focus
High production value;
emphasis on expert
programming
Sample Channel Concepts
•Quick Laugh
•All Access
•Election 2008
•Project X
•Instant Karma
Tier 2
Mix of acquired and
general UGV, mix of
expert programming and
user comments/ratings
•
•
•
•
Sexy
Travel
Citizen Journalist
How-To
Tier 3
General UGV,
programming largely
based on user input
•
•
•
•
Pets & Animals
Car Culture
Video Games
Family Friendly
Med
•
•
•
•
Holiday / Events
Don’t Try at Home
Trends / Lifestyle
Action Sports
Low
•
•
•
•
Blog!
Colleges
Spirituality
Digital Ghetto
Launch Grouper 3.0 with 5-6 Channels in June
10 Channels Live by End of Fiscal Year
7/6/2015
PRIVILEGED AND CONFIDENTIAL
page 38
STREAMLINE
Product Roadmap
DRAFT
Q4 FY 07
Jan - Mar
Q1 FY 08
Apr - Jun
Q2 FY 08
Jul - Sep
Q1 FY 08
Oct - Dec
2.5 Launch (Committed)
3.0 Launch (DRAFT. Cuts coming)
(Placeholder)
(Placeholder)
Video Encoding
Higher Quality
Re-branding
UI Overhaul
New name (?)
Talent Show
Mobile Sharing 2.0
Live capture from phone
Content Overhaul
Seeded w/ quality, Best emerging
vids / talent, Programming Focus:
guides & "Pyramid" show structure
Recommendation Engine
Personalized video channel
Playlists & Continuous Play
Favorites, user-playlists, Internal &
External player
New Video Details Page
New layout, Playlists, ads
Multi File Upload
Flash based, faster, easier
Alt. path for large uploads (>100mb)
External Player
Playlist aware, cont. play
Spider-Man 3 Contest
Power UGV component
New Home page (not video wall)
Advertising Tech 1.0
Ads - targeting & filtering
Royalty Tracking Tech
Rev share w/ signed content creators
1-Click Publishing
Piczo, Bebo, Tagged, Hi5
Distribution Network
1-click pathways, Affiliates
Syndication Network
Broadband (AOL), Podcasts (iTunes)
Channel Home Pages / "Shows"
Support "Pyramid" content structure
7/6/2015
Institutionalization of Fame
Reputation / Status, Partner Tools
Multi-site Publishing
Syndication Network
Mobile (Sprint) & IPTV (Bravia)
My Channel
Persistent combo - playlists &
subscriptions. Watch what my
friends watch
Web-based Groups
Web-based IM integration
Add IM to user profile and
details pages
Advertising Tech 2.1
Device video downloads ad
insertion (Mobile, IPTV)
Hardware Integration
E.g. Camera's, PC's, Devices
video
Client Re-launch
Push to desktop
3rd Party Plug-ins, Skins
Geo Sharing 1.2
Geo Interface for discovery
Geo meta data interface for
uploads and edit existing video
Hardware Integration
E.g. Camera's, PC's, Devices
Mobile Sharing 1.0
Email from phone,
Download to phone
Tag Engine Re-write
External Player
Ads, Sponsors, Embedded Search
Syndication Network
Sony Ericsson
Family Filter
Advertising Tech 2.0
Video ads internal / ext.
GeoFilter US vs Int'l (DoubleClick)
Broadband & Podcast ad inserts
Customizable User Profiles
User show pages
Brand show pages
PRIVILEGED AND CONFIDENTIAL
page 39
Extending Audience Reach Through Marketing and
Distribution
DRAFT
Attract New Users through Marketing
Online
Marketing
Project X
Prizes
Leverage SPE
Cross-Sony
Support
Extend Reach through 3rd Party Distribution Partners
Social
networks
7/6/2015
Online
portals
Verticals
PRIVILEGED AND CONFIDENTIAL
Hardware /
Embed deals
page 40
Revenue Strategy
•
Subject to Revised
Revenue Assumptions
DRAFT
Advertising and sponsorships forecast to deliver $9.7MM in FY08 revenue
Advertising Revenue
Video Interstitials
• Run-of-Site video advertising
inventory (max ad ratio 1:3
videos)
Banners
• 1 banner per page; 2
impressions per stream
Sponsored Search / UIV
Ad placement against sponsored
terms – paid on a per click basis
Channel-Based Sponsorship
Revenue
Non-Channel-Based
Sponsorship Revenue
Video Interstitials
Project X
• Sponsor receives dedicated
portion of video interstitial
inventory w/ companion rich
media ad at a premium CPM
• Competitions within the 9
Project X sub-channels
Other
• Advertiser pays fees for
persistent branding,
enticements, and sponsored
downloads from a channel
Remnant
7/6/2015
Branded Channels
• Custom Channels dedicated
to a single brand (i.e. ‘Mini
Cooper’ channel)
• 12 total in FY08 at average
price of $27k each
• Domestic and Int’l banner and
domestic video interstitial
inventory sold at a discount
$4 MM
• Talent-based sponsorships
$2 MM
PRIVILEGED AND CONFIDENTIAL
$3.7 MM
page 41
DRAFT
Growth in Audience & Traffic
Growing the domestic, on-site user base increases user activity, generates
additional inventory, and ultimately drives more revenue
On-Site / Off-Site Mix
Domestic / Int’l Mix
MRP
MRP
30
30
26MM
26MM
25
10.4
20
MRP
10.4
15
10
5
0
10
9MM
9.9
15.6
6.2
3.4
8.6
6.5
11.9
Unique Users (MM)
Unique Users (MM)
25
20
Q1
Q2
Domestic UU
Q3
10.9
10
5
Q4
12.1
15
0
Dec '06
9MM
7/6/2015
10.4
6.3
3.3
Dec '06
International UU
6.1
7.7
Q1
Q2
On-Site UU
% Domestic
34%
13.0
MRP
10.2
Q3
13.0
Q4
Off-Site UU
% On-Site
60%
30%
PRIVILEGED AND CONFIDENTIAL
50%
page 42
DRAFT
Audience Benchmarks
Ending FY08 Domestic On-Site UUs
are Reasonable vis-à-vis Competitors
MySpace
55
YouTube
30
Break
9.8
Heavy
7.8
Grouper FY08 Budget
7.8
American Idol
4-5 (1)
Addicting Clips / Atom Films
3.0 (2)
iFilm
2.3
eBaums’ World
3.2
Grouper Dec ‘06 Actuals
1.4
(1)
At peak months of April and May
(2)
Combined 1.8MM Addicting Clips & 2.2MM Atom Films
7/6/2015
PRIVILEGED AND CONFIDENTIAL
page 43
Grouper – Revenue Overview
DRAFT
Revenue ($MM)
$20
$19.0
$15
Millions
($)
$9.9
$10
$19
$4
$5
$0.03
Non Channel-Based
Sponsorship
$2
Channel-Based
Sponsorship
$4
Advertising
$3.0
$3
Total
$0
'07 Budget
7/6/2015
'07 Forecast
'08 MRP
PRIVILEGED AND CONFIDENTIAL
'08 Budget
page 44
Grouper – Summary P&L
P&L ($000s)
Total Revenue
Total COGS
Gross Profit
Total Operating Expenses
OpEx as a % of Revenue
Deal Amortization
EBIT Before Special Items
Special Items
EBIT
Headcount
Grouper
Project X
Ad Sales / Collections
Total
7/6/2015
'07 Budget
$3,000
($2,989)
$11
DRAFT
'07 Forecast
$31
Variance
'08 MRP
'08 Budget
Variance
($3,031)
$18,598
$10,038
($1,500)
$1,489
($8,185)
($9,010)
($1,469)
($1,480)
$10,413
$1,028
($9,385)
($19,538)
($28,209)
($8,671)
105%
281%
($825)
($8,345)
($7,567)
278%
N.M.
($1,666)
($963)
$703
($949)
($820)
($10,000)
($10,000)
$0
($10,074)
($28,001)
($17,927)
$3,700
$3,700
($24,301)
($14,227)
$0
($10,000)
52
52
$0
($10,000)
$778
($8,560)
$0
$0
$0
($10,074)
49
(3)
62
2
2
5
70
10
5
51
1
67
85
PRIVILEGED AND CONFIDENTIAL
$129
8
10
18
page 45
ADJUST TO 70 AT GROUPER
Headcount / Org Chart
Headcount
April ‘08
General Mgmt
J. Felser & D. Samuel
Co Presidents
3
Added in
FY08
1
DRAFT
Headcount
March ‘08
4
End of FY08
Grouper
70
Project X
10
Sales / Collections
Engineering &
Development
A. Eyal
CTO
C. Amen-Kroeger
VP, Engineering
25
11
36
Content
T. Liano
VP, Programming
7
3
10
Products
J. Shambroon
VP, Prod/Marktg
9
5
14
Customer / Acct
Management
M. Sitrin
VP, Partnerships
4
1
5
S. Gensler
Dir, Biz Dev
2
1
3
Project X
TBD
0
10
10
Ad Sales
SPT
2
3
5
52
35
87
Business
Development
7/6/2015
PRIVILEGED AND CONFIDENTIAL
5
Total
85
MRP
67
Requesting 18
Incremental Headcount
vs. MRP
Grouper [Content]
[8]
Project X
10
Total
18
page 46
DRAFT
Agenda
7/6/2015
•
Executive Summary
•
Digital Distribution
•
Mobile Entertainment
•
Digital Services / Grouper
•
Consolidated P&L
PRIVILEGED AND CONFIDENTIAL
page 47
DRAFT
BACKUP SLIDES
7/6/2015
PRIVILEGED AND CONFIDENTIAL
page 48